Have Dodd-Frank regs gone far enough? Obama doesn't think so

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President Barack Obama met with top U.S. regulators today to discuss implementation of the Dodd-Frank Act.

The White House said Obama urged regulators to tailor Dodd-Frank rules to financial institutions by taking into account the institutions’ size and complexity, Reuters reported.

White House Press Secretary Josh Earnest said Obama also asked regulators “to consider additional ways to prevent excessive risk-taking across the financial system, including as they continue to work on compensation rules and capital standards.”

Obama “has been pleased with the progress that the regulators have made in implementing the law,” Earnest said. The press secretary predicted that financial reform “is actually going to be one of the most prominent aspects of President Obama’s legacy.”

But Dodd-Frank, passed in 2010, has been unpopular in the mortgage industry, as it has brought about regulations many say are overly burdensome – including the “ability to repay” rule and various fee caps. Industry leaders say many of the new regulations place undue burden on originators and put mortgages out of reach for prospective borrowers who would have qualified under the old rules.
Republican lawmakers also despise the act.

“Dodd-Frank is every bit as far-reaching in its harmful consequences for struggling Americans as Obamacare,” said House Financial Services Committee Chairman Jeb Hensarling. “Thanks to Dodd-Frank, it is harder for low and moderate income Americans to buy a home and there are fewer community banks serving the needs of families and small businesses. … Services that bank customers once took for granted like free checking are being eliminated due to the high costs of Dodd-Frank’s regulatory burden. Another White House meeting between President Obama and an army of Washington regulators won’t do anything to help stressed families.”

COMMENTS

by John | 10/6/2014 3:01:10 PM

Chris Dodd and Barney Frank tried to make up for their total ruination of Fannie Mae and Freddie Mac, along with Bill Clinton in the 1980's. This attemp to ease their conscious is second only to Obamacare as the biggest waste of tax payer money and over regulation of an industry that the US has had in its history.

by Paul J Deschaie| 10/6/2014 3:01:36 PM

Does Mr. Obama realize his legacy will concentrate on how bankers did not go to Jail.

by angry | 10/6/2014 3:02:59 PM

Dodd-Frank are idiots. They have no idea what they have actually caused in the "real" world. Their ignorance of really how the mortgage industry works to benefit the borrower, to allow competition in this industry, which might I add competition are some of the grounds this great country was built on. The borrower "could" be benefited in so many different ways prior to Dodd-Frank. Now completely different story. It still amazes me, and I mean truly amazes me how these morons can make the kind of rules they do and we have to comply and they truly have no idea what they are talking about.